Ethics paper

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Ethics paper

  1. 1. Running head: ETHICS IN THE WORLD OF BUSINESS 1 Ethics in the World of Business Mohamed Maghraoui MGT/498 April 4, 2014 PAUL KRAMER
  2. 2. ETHICS IN THE WORLD OF BUSINESS 2 Ethics in the World of Business Strong business ethics, which include honesty, integrity, and fairness to all, play a critical role in running a successful organization as this function of a business operation allows today’s businesses to characterize the differences between correct and incorrect ethical behavior. Additionally, strong ethical values also help businesses gain a competitive advantage (Johnson, 2008), and it allows them to ensure that every employee is following the ethical standards that have been established by the leaders of his or her organization. To gain a better understanding of the importance of strong ethical value, this paper will a) explain the role of ethics, social responsibility, and sustainability in relation to organizational strategy. B) Examine the various types of shareholders that influence’s a company strategy. C) Identify at least one (or more) examples of a company that exemplifies sustainability and social responsibility in their operation. Role of Ethics, Social Responsibility, and Sustainability on Strategy Ethics, social responsibility, and sustainability are one of several factors that historically have an effect (either positive or negative) on an organization’s strategy. For example, a company ethical value can have a far-reaching affect on the following areas of an organization:  Public Image (or credibility level): Public image is how a company is viewed by the people or entities in their market environment. A lack of trust and credibility can place doubt in the minds and hearts of consumers, distributors, and suppliers causing a business to lose potential profits, resources, and partnerships.
  3. 3. ETHICS IN THE WORLD OF BUSINESS 3  Business Policies (or code of ethics): This aspect of a company implements policies or procedures regarding things, such as the promotion of diversity and the prevention of discrimination among the consumers and employees of their organization. Ensuring a diverse and unbiased organization will allow businesses to increase the odds of attracting a wider variety of future consumers, investors, and employees to their organization, regardless of his or her race, gender, or religion preference. Additionally, maintain a diverse workplace can also have a positive effect on a company’s credibility and ability to become more creative and innovative with their ideas as they will have a larger foundation of people to pick- and-choose from.  Short-term and Long-term Strategy Measurements: Today’s businesses use measuring tools, such as metrics to evaluate if they are achieving ethical standards, and other business goals or objectives. Effects of Social Responsibility on Strategy Corporate social responsibility is a very important to an organization’s economic and social strategy as this aspect of business “is concerned with treating the stakeholders of a company or institution ethically or in a responsible manner” (Hopkins, 2011, para 2). Additionally, social responsibility is also is also important to a company’s success as it helps businesses develop different ideas and policies that will improve the quality of life and service to an organization’s workforce (and their families) and the community in general. To maintain high levels of social responsibility, business managers must continue to take their employees, shareholders, consumers, and business community voice and opinion into consideration when developing and implementing their business strategy.
  4. 4. ETHICS IN THE WORLD OF BUSINESS 4 Effects of Sustainability on Strategy Sustainability is a concept that consists of both social and economic components and those social and economic components of this concept can have an influence on the value of organization’s products and services to their consumers. Additionally, the concept of sustainability can also have effect an organization’s strategy by influencing things, such as a) the way a company identify their internal issues. B) The way a company gathers their research and classifies them into individual categories. C) The way an organization ranks and implements its priorities and policies into their business strategy (Bansal, & Laughland, 2011). Some of the main obstacles that businesses must overcome when considering the effects of sustainability on their business strategy include obstacles, such as 1) far too many sustainability metrics that measure (some effective, some ineffective) sustainability and its effect on strategy. 2) Government policies and its effect on short-term and long-term sustainability efforts. 3) Categorizing and prioritizing the more immediate short-term and long-term threats or opportunities that could have the most affect (positive or negative) on the organization. Types of Shareholders and their Influence As today’s corporations continue to expand and globalize their business operations into overseas markets, the more influence that shareholders have in the daily business decisions (customer service, types of product and logistics, prices, ethical values, policies, etc.) and activities of an organization. Employees, customers, investors, communities, and business partners represent several types of shareholders that carry major weight in a company business decisions and activities.
  5. 5. ETHICS IN THE WORLD OF BUSINESS 5 Corporation that Exemplifies Sustainability and Social Responsibility With growing public awareness and consumer demand for acting in a fiscally and socially responsible manner has become very important for today’s businesses (small and large) to exemplify high levels of sustainability and social responsibility in their present and future business operations. Starbucks Coffee is a prime example of an organization that exemplifies high levels of sustainability and social responsibility. One of the main sustainability efforts that Starbucks have implemented is their organization’s emphasis on introducing more green coffee items on their Starbucks menus around the world. To support this move into the 21st Century, the leaders of Starbucks created a guideline called C.A.F.E. Practices, which helps Starbucks companies around the world, achieve benchmarks, such as social responsibility, product quality, economic accountability, and environmental leadership (Loidice, 2010). In addition to their green coffee movement, Starbucks leaders also decided to support a product called Ethos Water. Ethos Water is a clean water product that helps more than one billion people around the world gain access to clean, and safe drinking water (Loidice, 2010). Conclusion Many businesses have continued to research and implement different ethical strategies into his or her organization so that he or she can identify the most effective evaluation methods to gauge the importance of implementing and sustaining a strong ethical organization. What this paper has discovered is that strong ethical values have been and will continue to play a critical role in the short-term and long-term success of an organization.
  6. 6. ETHICS IN THE WORLD OF BUSINESS 6 References Wheelen, T. L., & Hunger, J. D. (2010). Concepts in strategic management and business policy: Achieving sustainability (12th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall. Bansal, T., & Laughland, P. (2011). The top ten reasons businesses aren’t more sustainable. Retrieved October 28, 2012 from, http://www.iveybusinessjournal.com/topics/social- responsibility/the-top-ten-reasons-why-businesses-aren%E2%80%99t-more- sustainable#.UI2T8WcXu2V Hopkins, M. (2011). Definition of corporate responsibility. Retrieved October 28, 2012 from, http://mhcinternational.com/articles/definition-of-csr Johnson, A. (2008, March, 2). Practicing good ethics gives competitive advantage. Retrieved October 28, 2012 from, http://www.bizjournals.com/denver/stories/2008/03/03/smallb6.html?page=all Loidice, B. (2010). 10 companies with social responsibility at the core. Retrieved October 28, 2012 from, http://adage.com/article/cmo-strategy/10-companies-social-responsibility- core/143323/

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